Gross margins have steadily eroded from 35.3% in 2023Q4 to 28.3% in 2026Q1, reflecting structural challenges in maintaining pricing power amidst a broader revenue downturn.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'01 |
|---|
| Sales/Revenue | 14.82B | 15.19B | 16.4B | 17.1B | 22.73B | 19.89B | 8.56B | 7.28B | 7.72B | 7.03B | 6.37B | 3.56B | 1.6B | 1.49B | 1.07B | 779.09M | 700.34M | 677.89M | 1.03B | 1.59B | 2.24B | 2.34B | 2.06B | 1.68B | 1.51B |
| Revenue Growth % | -8.33% | -7.38% | -4.08% | -24.77% | 14.24% | 132.44% | 17.56% | -5.75% | 9.82% | 10.47% | 78.63% | 122.21% | 7.67% | 39.15% | 37.43% | 11.24% | 3.31% | -34.47% | -35.04% | -28.89% | -4.21% | 13.59% | 22.86% | 10.67% | - |
| Cost of Goods Sold | 10.39B | 10.78B | 11.02B | 11.08B | 14.98B | 14.04B | 6.34B | 5.3B | 5.8B | 5.31B | 4.77B | 2.66B | 1.25B | 1.17B | 856.11M | 621.15M | 568.59M | 535.48M | 811.37M | 1.2B | 1.65B | 1.75B | 1.57B | 1.3B | 1.16B |
| COGS % of Revenue | - | 70.97% | 67.18% | 64.83% | 65.92% | 70.59% | 74.03% | 72.85% | 75.11% | 75.44% | 74.92% | 74.71% | 77.74% | 78.53% | 79.96% | 79.73% | 81.19% | 78.99% | 78.43% | 75.49% | 73.81% | 74.65% | 76.51% | 77.63% | 76.53% |
| Gross Profit | 4.43B | 4.41B | 5.38B | 6.01B | 7.74B | 5.85B | 2.22B | 1.98B | 1.92B | 1.73B | 1.6B | 901.46M | 357M | 319.92M | 214.57M | 157.94M | 131.76M | 142.41M | 223.15M | 390.31M | 586.55M | 592.53M | 483.51M | 374.68M | 355.3M |
| Gross Margin % | 29.89% | 29.03% | 32.82% | 35.17% | 34.08% | 29.41% | 25.97% | 27.15% | 24.89% | 24.56% | 25.08% | 25.29% | 22.26% | 21.47% | 20.04% | 20.27% | 18.81% | 21.01% | 21.57% | 24.51% | 26.19% | 25.35% | 23.49% | 22.37% | 23.47% |
| Gross Profit Growth % | - | -18.09% | -10.47% | -22.37% | 32.36% | 163.25% | 12.43% | 2.8% | 11.32% | 8.18% | 77.13% | 152.51% | 11.59% | 49.1% | 35.85% | 19.88% | -7.48% | -36.18% | -42.83% | -33.46% | -1.01% | 22.55% | 29.05% | 5.46% | - |
| Operating Expenses | 3.81B | 3.62B | 3.79B | 3.84B | 3.97B | 3.46B | 1.68B | 1.58B | 1.55B | 1.44B | 1.36B | 810.84M | 306.51M | 271.88M | 222.26M | 195.42M | 194.65M | 201.4M | 292.29M | 403.18M | 446.71M | 467.36M | 376.1M | 328.2M | 324.43M |
| OpEx % of Revenue | - | 23.85% | 23.1% | 22.44% | 17.49% | 17.41% | 19.61% | 21.76% | 20.12% | 20.5% | 21.37% | 22.75% | 19.11% | 18.25% | 20.76% | 25.08% | 27.79% | 29.71% | 28.25% | 25.32% | 19.95% | 19.99% | 18.27% | 19.59% | 21.44% |
| Selling, General & Admin | 3.81B | 3.62B | 3.79B | 3.84B | 3.97B | 3.46B | 1.68B | 1.58B | 1.55B | 1.44B | 1.37B | 788.4M | 306.79M | 271.78M | 222.26M | 195.42M | 194.65M | 201.4M | 292.29M | 375.62M | 439.94M | 467.36M | 376.1M | 327.03M | 324.43M |
| SG&A % of Revenue | - | 23.85% | 23.1% | 22.44% | 17.49% | 17.41% | 19.61% | 21.76% | 20.12% | 20.5% | 21.44% | 22.12% | 19.13% | 18.24% | 20.76% | 25.08% | 27.79% | 29.71% | 28.25% | 23.59% | 19.65% | 19.99% | 18.27% | 19.52% | 21.44% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 27.56M | 6.76M | 0 | 0 | 1.17M | 0 |
| Operating Income | 619.77M | 786.28M | 1.6B | 2.18B | 3.77B | 2.39B | 543.85M | 392.31M | 368.97M | 285.1M | 236.34M | 90.62M | 50.02M | 48.04M | -8.7M | -37.48M | -63.73M | -60.67M | -125M | -12.88M | 139.85M | 125.17M | 107.42M | 46.48M | 30.87M |
| Operating Margin % | 4.18% | 5.18% | 9.73% | 12.73% | 16.59% | 12% | 6.35% | 5.39% | 4.78% | 4.05% | 3.71% | 2.54% | 3.12% | 3.22% | -0.81% | -4.81% | -9.1% | -8.95% | -12.08% | -0.81% | 6.24% | 5.35% | 5.22% | 2.78% | 2.04% |
| Operating Income Growth % | - | -50.71% | -26.7% | -42.28% | 57.92% | 338.98% | 38.63% | 6.33% | 29.42% | 20.63% | 160.81% | 81.17% | 4.11% | 652.02% | 76.78% | 41.2% | -5.05% | 51.46% | -870.84% | -109.21% | 11.72% | 16.53% | 131.08% | 50.58% | - |
| EBITDA | 1.21B | 1.38B | 1.6B | 2.73B | 4.27B | 2.93B | 660.42M | 492.34M | 466.87M | 378.1M | 346.13M | 148.9M | 59.54M | 57.35M | 2.42M | -23.43M | -48.3M | -42.75M | -103.42M | 16.15M | 164.82M | 160.87M | 130.75M | 68.63M | 56.1M |
| EBITDA Margin % | 8.2% | 9.07% | 9.73% | 15.99% | 18.78% | 14.75% | 7.72% | 6.76% | 6.04% | 5.38% | 5.44% | 4.18% | 3.71% | 3.85% | 0.23% | -3.01% | -6.9% | -6.31% | -10% | 1.01% | 7.36% | 6.88% | 6.35% | 4.1% | 3.71% |
| EBITDA Growth % | -38.43% | -13.64% | -41.66% | -35.92% | 45.41% | 344.38% | 34.14% | 5.46% | 23.48% | 9.24% | 132.46% | 150.09% | 3.82% | 2272.65% | 110.31% | 51.48% | -12.98% | 58.66% | -740.23% | -90.2% | 2.45% | 23.04% | 90.53% | 22.32% | - |
| D&A (Non-Cash Add-back) | 594.76M | 591.43M | 51K | 558.27M | 497.14M | 547.35M | 116.57M | 100.04M | 97.91M | 92.99M | 109.79M | 58.28M | 9.52M | 9.3M | 11.12M | 14.04M | 15.43M | 17.91M | 21.57M | 29.03M | 24.97M | 35.7M | 23.34M | 22.14M | 25.23M |
| EBIT | 619.77M | 786.28M | 1.6B | 2.18B | 3.77B | 2.39B | 543.85M | 392.31M | 372.17M | 285.1M | 236.34M | 90.75M | 49.61M | 48.04M | -8.7M | -37.48M | -63.73M | -60.67M | -112.61M | -12.88M | 139.85M | 125.17M | 107.42M | 46.48M | 30.87M |
| Net Interest Income | -283.44M | -273.89M | -207.72M | -192.12M | -170.97M | -128.78M | -135.69M | -109.55M | -108.21M | -193.17M | -214.67M | -109.2M | -30.35M | -89.64M | -45.14M | -24.94M | -31.67M | -27.05M | -25.64M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 283.44M | 273.89M | 207.72M | 192.12M | 170.97M | 128.78M | 135.69M | 109.55M | 108.21M | 193.17M | 214.67M | 109.2M | 30.35M | 89.64M | 45.14M | 24.94M | 31.67M | 27.05M | 25.66M | 27.73M | 28.72M | 47.23M | 0 | 0 | 0 |
| Other Income/Expense | -284.84M | -273.89M | -207.72M | -192.12M | -198.37M | -135.88M | -135.69M | -109.55M | -108.21M | -193.17M | -214.67M | -109.2M | -30.35M | -89.64M | -45.14M | -24.94M | -31.67M | -27.05M | -25.66M | -27.73M | -28.72M | -47.23M | -24.46M | -11.74M | -24.65M |
| Pretax Income | 334.93M | 512.38M | 1.39B | 1.98B | 3.57B | 2.25B | 408.17M | 282.75M | 260.75M | 91.93M | 21.67M | -18.58M | 19.67M | -41.6M | -53.84M | -62.41M | -95.41M | -87.71M | -150.66M | -40.6M | 111.13M | 77.94M | 82.96M | 34.74M | 6.22M |
| Pretax Margin % | 2.26% | 3.37% | 8.46% | 11.61% | 15.72% | 11.32% | 4.77% | 3.88% | 3.38% | 1.31% | 0.34% | -0.52% | 1.23% | -2.79% | -5.03% | -8.01% | -13.62% | -12.94% | -14.56% | -2.55% | 4.96% | 3.33% | 4.03% | 2.07% | 0.41% |
| Income Tax | 43.43M | 77.18M | 309.63M | 443.65M | 822.46M | 526.13M | 94.63M | 60.95M | 55.56M | 53.15M | -122.67M | 4.39M | 1.11M | 769K | 577K | 2.22M | -1.11M | -30.82M | -18.87M | -16.85M | 42.24M | 29.32M | 31.48M | 13.34M | 29.33M |
| Effective Tax Rate % | 12.97% | 15.06% | 22.32% | 22.36% | 23.03% | 23.37% | 23.18% | 21.55% | 21.31% | 57.81% | -566.12% | -23.61% | 5.65% | -1.85% | -1.07% | -3.55% | 1.17% | 35.14% | 12.52% | 41.5% | 38.01% | 37.61% | 37.95% | 38.41% | 471.36% |
| Net Income | 291.5M | 435.2M | 1.08B | 1.54B | 2.75B | 1.73B | 313.54M | 221.81M | 205.19M | 38.78M | 144.34M | -22.83M | 18.15M | -42.69M | -56.86M | -65M | -95.51M | -61.85M | -139.49M | -23.75M | 68.89M | 48.63M | 51.58M | 17.58M | 1.54M |
| Net Margin % | 1.97% | 2.86% | 6.57% | 9.01% | 12.1% | 8.67% | 3.66% | 3.05% | 2.66% | 0.55% | 2.27% | -0.64% | 1.13% | -2.87% | -5.31% | -8.34% | -13.64% | -9.12% | -13.48% | -1.49% | 3.08% | 2.08% | 2.51% | 1.05% | 0.1% |
| Net Income Growth % | -68.16% | -59.63% | -30.03% | -43.97% | 59.35% | 450.31% | 41.35% | 8.1% | 429.1% | -73.13% | 732.21% | -225.79% | 142.51% | 24.91% | 12.52% | 31.95% | -54.41% | 55.66% | -487.29% | -134.48% | 41.67% | -5.73% | 193.47% | 1039.82% | - |
| Net Income (Continuing) | 291.5M | 435.2M | 1.08B | 1.54B | 2.75B | 1.73B | 313.54M | 221.81M | 205.19M | 38.78M | 144.34M | -22.83M | 18.15M | -42.37M | -54.42M | -64.63M | -94.29M | -56.89M | -120.58M | -23.75M | 68.89M | 48.63M | 51.48M | 21.4M | 3.66M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -326K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.65 | 3.89 | 9.06 | 11.94 | 16.82 | 8.48 | 2.66 | 1.90 | 1.76 | 0.34 | 1.27 | -0.22 | 0.18 | -0.44 | -0.60 | -0.68 | -1.04 | -1.58 | -3.59 | -0.62 | 1.75 | 1.42 | 1.77 | 0.64 | 0.13 |
| EPS Growth % | -66.54% | -57.06% | -24.12% | -29.01% | 98.35% | 218.8% | 40% | 7.95% | 417.65% | -73.23% | 677.27% | -222.22% | 140.91% | 26.67% | 11.76% | 34.62% | 34.18% | 55.99% | -479.03% | -135.43% | 23.24% | -19.77% | 176.56% | 392.31% | - |
| EPS (Basic) | - | 3.91 | 9.13 | 12.06 | 16.98 | 8.55 | 2.69 | 1.92 | 1.79 | 0.34 | 1.30 | -0.22 | 0.19 | -0.44 | -0.60 | -0.68 | -1.04 | -1.58 | -3.59 | -0.62 | 1.87 | 1.53 | 1.88 | 0.64 | 0.13 |
| Diluted Shares Outstanding | 109.87M | 111.82M | 118.98M | 129M | 163.48M | 203.47M | 117.92M | 117.03M | 116.55M | 115.6M | 113.58M | 103.19M | 100.52M | 96.45M | 95.46M | 94.95M | 91.68M | 39.16M | 38.84M | 38.1M | 39.34M | 34.3M | 29.16M | 27.56M | 28.03M |
| Basic Shares Outstanding | 109.87M | 111.42M | 118.04M | 127.78M | 161.96M | 201.84M | 116.61M | 115.71M | 114.59M | 112.59M | 110.75M | 103.19M | 98.05M | 96.28M | 95.46M | 94.95M | 91.68M | 39.16M | 38.84M | 38.1M | 36.89M | 31.82M | 27.43M | 27.51M | 27.87M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 413.72% | 270.63% | - | - |
Cyclical housing demand sensitivity
As indicated by the most recent quarterly data, Builders FirstSource has experienced a sustained revenue decline, with the 2026Q1 period showing a 10.1% year-over-year contraction, reflecting the broader challenges currently facing the single-family residential construction market and the impact of commodity price deflation on top-line figures.
The consistent negative growth trajectory suggests that the company is struggling to offset volume declines with its value-added product mix. Investors should monitor whether this trend represents a cyclical trough or a more structural loss of market share as housing starts remain under pressure from elevated interest rates.
According to the provided financial statements, gross margins have steadily eroded from a peak of 35.3% in 2023Q4 to 28.3% in 2026Q1, suggesting that the company's ability to maintain premium pricing on manufactured components is being challenged by the current competitive and macroeconomic environment.
This margin degradation appears to be more than just a function of commodity price volatility, potentially indicating a loss of pricing power. The narrowing spread between cost of goods sold and revenue warrants investigation into whether the shift toward off-site manufacturing is providing the expected defensive buffer against cyclical downturns.
Based on reported figures, operating income has plummeted from $490.4 million in 2023Q4 to a marginal $17.9 million in 2026Q1, demonstrating that the company's high fixed-cost base is failing to scale efficiently as revenue volumes continue to retreat across its primary operating segments.
The collapse in operating margin to 0.5% highlights the significant risk inherent in the company's manufacturing-heavy cost structure. Without a stabilization in revenue, the current SG&A burden appears increasingly difficult to absorb, which may lead to further earnings volatility in subsequent quarters.
As reported in recent filings, the company swung to a net loss of $47.4 million in 2026Q1, a stark reversal from the $350.7 million profit recorded in 2023Q4, which suggests that non-operating items and tax impacts are exacerbating the underlying operational weakness during this period of contraction.
The transition to negative net income raises concerns regarding the sustainability of current dividend or capital allocation policies. Analysts should scrutinize the impact of stock-based compensation and amortization of intangibles, which appear to be masking the true extent of the cash-generating capacity during this cyclical downturn.
While management emphasizes the long-term value of off-site manufacturing, the data suggests that the company remains highly vulnerable to cyclical swings, as evidenced by the rapid deterioration of net margins to -1.4% in the most recent quarter, challenging the narrative of a structurally improved business model.
Skeptics may argue that the company's reliance on large-scale M&A has created a bloated cost structure that is ill-suited for a prolonged housing slowdown. The lack of significant cash reserves relative to revenue suggests that the company may have limited flexibility to navigate a deeper or more extended industry recession.
Quick answers to the most common questions about buying BLDR stock.
For fiscal year 2025, Builders FirstSource, Inc. (BLDR) reported total revenue of $15.19B. This represents a 903.6% increase compared to $1.51B in 2001.
Builders FirstSource, Inc. (BLDR) is profitable, generating $435.2M in net income for the fiscal year ending 2025 with a net profit margin of 2.9%.
Builders FirstSource, Inc. (BLDR) reported an operating income of $786.3M, resulting in an operating profit margin of 5.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Builders FirstSource, Inc. (BLDR) generated $4.41B in gross profit for the year, representing a gross profit margin of 29.0%. This demonstrates the company's core pricing power and production efficiency.